Answers to your insurance questions

Reconstruction cost is the price of restoring damaged property after a loss has occurred. This would be the current cost calculated at a specific date. This is restoring the property to how it was just before the claim occurred.

If you fail to have adequate reconstruction cost on your policy then you will pay the difference out of pocket. Remember that you also share in any loss with the amount of the deductible.

With a fluctuating economy it is in your best interest to try and keep your reconstruction costs up-to-date. If costs have gone down then this could be a cost-saving measure for you with the resulting reduced premium.